The Board may, at its sole discretion, offer an Early Retirement Incentive Program for full-time licensed employees in any school year. The Board shall determine annually whether the program will be offered and may establish or modify the program's eligibility requirements, benefit levels, application deadlines, participation limits, and other terms and conditions. Approval of the program in one year shall not obligate the Board to offer the program in any subsequent year.

Definition of Eligible Employee

For purposes of this policy, a full-time licensed employee is an individual employed by the District in a position requiring a valid Iowa Board of Educational Examiners license as a condition of employment and who is regularly scheduled to work at least thirty-five (35) hours per week. Eligibility for participation in the Early Retirement Incentive Program is limited to individuals who are employed by the District as full-time licensed employees on the date of application and who remain employed through the effective date of retirement, unless otherwise approved by the Board.

Approval of participation in the Early Retirement Incentive Program shall be at the sole discretion of the Board. Satisfaction of the eligibility requirements does not entitle an employee to participate in the program or receive any retirement incentive benefit.

Annual Program Parameters

For each year in which the Early Retirement Incentive Program is offered, the Board shall establish the eligibility requirements, application procedures, participation limits, benefit structure, deadlines, and any other terms and conditions governing the program.

Unless otherwise established by the Board, participation in the program shall be limited to five (5) employees per fiscal year. The Board may annually establish a different participation limit in which the program is offered.

If the number of eligible applicants exceeds the established participation limit, applicants shall be ranked based on continuous years of service to the District, with preference given to the employee with the greatest length of service. In the event of a tie, preference shall be given to the employee with the earliest original date of hire.

Notwithstanding the foregoing, the Board reserves the right to deny participation if the retirement of an otherwise eligible employee would create a critical staffing shortage or materially impair District operations.

The Board's determination regarding eligibility, participation, and program administration shall be final.

Eligibility Requirements

Unless otherwise established by the Board for a particular program year, the following eligibility criteria shall apply:

• Has attained age fifty-five (55) on or before August 1 immediately preceding the school year in which retirement becomes effective;
• Has completed at least ten (10) years of continuous service as a full-time licensed employee of the District as of the effective date of retirement;
• Submits a written application to the superintendent on or before December 10 of the school year in which retirement will occur. Applications received after December 10 may be considered only upon approval of the Board, which shall have sole discretion to accept or reject late applications;
• Submits an irrevocable written resignation, effective at the conclusion of the contract year, concurrently with the application for participation in the program. Acceptance of the resignation may be conditioned upon Board approval of the employee's participation in the program; and,
• Receives board approval of the licensed employee's application for participation in the early retirement plan, of the licensed employee's resignation and of the disbursement of early retirement incentive to the licensed employee.

An employee who elects to participate in the Early Retirement Incentive Program shall not be eligible to receive any other early notice or resignation incentive, severance payment, separation agreement, or similar benefit provided under Board Policy 401.6 or any other District policy, program, agreement, or practice. Participation in the Early Retirement Incentive Program shall constitute the employee's sole and exclusive retirement or separation benefit, unless otherwise expressly authorized by the Board.

Approval Process

Board approval of an employee's application for early retirement shall constitute acceptance of the employee's resignation and voluntary termination of the employee's employment with the District effective at the conclusion of the current contract year. Upon approval, the employee's participation in the Early Retirement Incentive Program shall become effective, and any subsequent request to withdraw the resignation or revoke participation in the program may be granted only at the sole discretion of the Board.

The employee shall be eligible to receive the approved early retirement incentive on July 1 following retirement, or on another date authorized by the Board. If the Board does not approve the application, the employee's resignation shall be deemed withdrawn and the employee's contract shall remain in full force and effect.

Voluntary Early Retirement Benefit

Eligible employees approved for participation in the Early Retirement Incentive Program shall elect one (1) of the following three (3) early retirement incentive options. Each option constitutes a separate and complete benefit package and must be accepted in its entirety. The options are mutually exclusive, and no employee shall be permitted to combine, modify, exchange, supplement, or otherwise alter the benefits provided under any option.

Option 1

Upon retirement, the licensed employee is eligible to continue participation in the school district's group insurance plan, with the District subsidizing fifty percent (50%) of the applicable single policy premium for a period of three (3) years, provided the employee continues to meet the requirements of the insurer.

Following the expiration of the District's three-year subsidy period, the retiree may continue participation in the school district's group insurance plan at the retiree's sole expense, provided the retiree continues to meet the requirements of the insurer and timely remits all required premium payments.

This insurance coverage will cease when the licensed employee/retiree reaches age sixty-five, secures other employment in which the employer provides insurance coverage, or dies. If dependent insurance coverage is carried, an eligible spouse may continue coverage beyond the employee's/retiree's sixty-fifth birthday at the spouse’s expense for a period of up to five years or until the spouse reaches age sixty-five, whichever occurs first.

Option 2

Each approved participant shall receive an early retirement incentive of eighteen thousand dollars ($18,000), payable in three (3) annual installments of six thousand dollars ($6,000) each, beginning July 1 following retirement.

In the event the participant dies before all early retirement incentive payments have been distributed, any remaining unpaid balance shall be paid to the participant's estate.

Upon retirement, the licensed employee may continue participation in the District's group health insurance plan, provided the employee continues to meet the requirements of the insurer. The retiree shall be responsible for payment of all premiums and shall remit such payments to the Board Secretary in accordance with the District's payment procedures.

Retiree health insurance coverage shall cease when the licensed employee/retiree reaches age sixty-five, secures other employment in which the employer provides insurance coverage, or dies. If dependent insurance coverage is carried, an eligible spouse may continue coverage beyond the employee's/retiree's sixty-fifth birthday at the spouse’s expense for a period of up to five years or until the spouse reaches age sixty-five, whichever occurs first.

Option 3

Each approved participant shall receive an amount equal to one hundred percent (100%) of the participant's accumulated leave, including sick leave, emergency leave, personal leave multiplied by the current daily substitute teacher pay rate payable in three (3) equal annual installments, beginning in July following retirement. In addition, the participant shall receive a one-time early retirement incentive of thirty-five hundred dollars ($3,500) payable in July following retirement.

In the event the participant dies before all early retirement incentive payments have been distributed, any remaining unpaid balance shall be paid to the participant's estate.

Upon retirement, the licensed employee may continue participation in the District's group health insurance plan, provided the employee continues to meet the requirements of the insurer. The retiree shall be responsible for payment of all premiums and shall remit such payments to the Board Secretary in accordance with the District's payment procedures.

Retiree health insurance coverage shall cease when the licensed employee/retiree reaches age sixty-five, secures other employment in which the employer provides insurance coverage, or dies. If dependent insurance coverage is carried, an eligible spouse may continue coverage beyond the employee's/retiree's sixty-fifth birthday at the spouse’s expense for a period of up to five years or until the spouse reaches age sixty-five, whichever occurs first.

The Board reserves the sole discretion to offer, modify, suspend, or discontinue the Early Retirement Incentive Program at any time. Adoption of this policy shall not be construed as creating a contractual right or entitlement to participation in the program. The Board shall review the program periodically and determine, in its sole discretion, whether the program will be offered for any given school year.

Licensed employees who retire under this policy may qualify for retirement benefits through the Iowa Public Employees Retirement System.

Approved:  July 25, 2018      
Reviewed: October 15, 2025    
Revised: July 15, 2026